44Cost Savings

  1. To determine how much cost savings the HSA may provide you and/or your family, you will need to consider several items.
  2. Your Total Contributions (Remember: Contributions as well as accrued interest to the HSA are tax free.)
  3. Your Total Estimated Expenses (Remember: Distributions on qualified medical expenses from the HSA are tax free.)
  4. The Premium Difference Between Your HSA Plan and Other Plan Options (Remember: Monthly premiums for the HDHP insurance are typically lower than those of a Traditional PPO.)

Your Estimated HSA Cost Savings Example

Traditional PPO + FSA HDHP + HSA
Gross Annual Pay $60,000 $60,000
Maximum Annual Health Care FSA Contribution $3,050 $7,750
Estimated Annual Family Premium -$13,000 -$11,000
Adjusted Gross Pay $43,950 $41,250
Estimated Tax Rate (15%) $6,622.50 $6,255
Estimated Annual Expenses $3,050 $3,050
Remaining FSA vs. HSA Balance + $0 $4,450
Remaining Take Home Pay with FSA vs. HSA $34,677.50 $37,045

YOUR TAKE HOME PAY COULD BE $2,367.50 MORE WITH THE HSA

All figures in this table are estimates and based on an annual salary and maximum contribution limits to the benefit account. Your salary, tax rate, health care expenses, and tax savings may be different.

Who Is Eligible?

In order to be eligible to enroll and contribute to a Health Savings Account (HSA), you must first ensure you meet the necessary requirements. If your answers to the below questions match ours then you are likely eligible to open and contribute to an HSA.

Question Answer
Are you currently enrolled or covered by a HSA-qualified high deductible health plan? YES
Is the annual deductible for your health insurance plan higher than $1,350 for individual coverage or higher than $2,700 for family coverage? YES
Is the annual maximum out-of-pocket for your health insurance plan less than $6,750 for individual coverage or less than $13,500 for family coverage? YES
Are you covered by any other health plan (such as a spouse or parent) that is not considered a HDHP? NO
Are you currently enrolled in Medicare (Part A or Part B) NO
Are you currently enrolled in either a Health Care Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA) that reimburses you for medical expenses in addition to dental and vision expenses? NO

Contribution Limits

Self-Only Coverage 2022 2023 2024
Maximum Annual HSA Contribution $3,650 $3,850 $4,150
HSA Catch-up Contribution (Age 55 or Over) $1,000 $1,000 $1,000
Minimum Annual Deductible for HDHP $1,400 $1,500 $1,600
Maximum Out-of-Pocket Limit for HDHP $7,050 $7,500 $8,050
Family Coverage 2022 2023 2024
Maximum Annual HSA Contribution $7,300 $7,750 $8,300
HSA Catch-up Contribution  $1,000 $1,000 $1,000
Minimum Annual Deductible for HDHP $2,800 $3,000 $3,200
Maximum Annual Out-of-Pocket Limit for HDHP $14,100 $15,000 $16,100

 

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IRS Announces 2025 HSA Contribution Limits

IRS Announces 2025 HSA Contribution Limits

The IRS recently announced the 2025 limits for Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs). HSA contribution ...

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